Inflation occurs over time as a result of
A) long-run aggregate supply increasing faster than aggregate demand.
B) long-run aggregate supply increasing faster than short-run aggregate supply.
C) decreases in aggregate demand.
D) aggregate demand increasing faster than long-run aggregate supply.
D
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When Costa Rica's resources are not fully employed, then relative to its production possibilities curve, the point representing its production position is located
a. somewhere outside (exterior to) the curve b. somewhere along the curve because it still has choice among those production possibilities combinations c. somewhere inside (interior to) the curve d. on a new production possibilities curve that is closer to the origin e. on a new production possibilities curve that is further from the origin
Why does producer surplus decrease as price decreases?
A. Producers sell less of the good while consumers buy even more of the good. B. Consumers buy more of the good at the lower price. C. Producers sell less of the good and receive less from the lower price. D. Producers sell more of the good but receive less from the lower price.